Since the COVID-19 pandemic, insurance claims costs have risen dramatically. Many factors, including the global pandemic, climate change, inflation, and the increase in the price of repairs or replacement items, are driving the cost increase. While there is enormous pressure to reduce insurance claims costs, insurers face a difficult challenge: get out of the industry now or find ways to reduce the costs of tackling claims.
According to Congressional testimony from the American Property Casualty Insurance Association last year, “insurers absorbed the worst underwriting losses in over a decade, contributing to a contraction of more